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Meanings and definitions for GDP
What does GDP stand for? What does GDP mean?
- Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period.GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore using a basis of GDP per capita at purchasing power parity (PPP) is arguably more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on the international market.The OECD defines GDP as "an aggregate measure of production equal to the sum of the gross values added of all resident and institutional units engaged in production and services (plus any taxes, and minus any subsidies, on products not included in the value of their outputs)." An IMF publication states that, "GDP measures the monetary value of final goods and services—that are bought by the final user—produced in a country in a given period of time (say a quarter or a year)."Total GDP can also be broken down into the contribution of each industry or sector of the economy.
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- Gross Domestic Product
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